The African Development Bank (AfDB) (www.AfDB.org) and the Government of Libya are pleased to announce the signing of a new grant agreement aimed at strengthening public financial management (PFM) systems in Libya. The agreement, signed on Monday, 18 November 2024, underscores the continued commitment of both institutions to fostering economic growth and strengthening private sector development in Africa through sustainable and impactful investments.This initiative is part of the Fund for African Private Sector Assistance (FAPA), a Trust Fund supported by the Government of Japan and managed by the Bank that provides grants to support the implementation of AfDBs Private Sector Development Strategy. Through capacity building and technical assistance, FAPA helps improve the business environment, strengthens financial systems, promotes the development of micro, small, and medium enterprises (MSMEs), and facilitates trade across African nations.The primary goal of the Strengthening Enabling Business Environment through Public Financial Management Support Project (SEBE-PFM) is to modernize Libyas public financial management systems. By enhancing public expenditure management, the project aims to deliver critical public services and infrastructure while creating a more favorable business environment that encourages private sector growth.Ms Malinne Blomberg, Deputy Director General of the African Development Bank in North Africa, emphasized the significance of the project, stating: This project, valued at USD 1 million, is the result of strategic collaboration and a concrete investment in Libyas future, made possible through the generous support of the Government of Japan.Libya, with significant financial assets, prioritizes the establishment of a robust PFM system. Through the African Development Banks project, Libya will benefit from a comprehensive Public Financial Management (PFM) Reform Strategy that emphasizes digitization, transparency, and accountability. The projects objectives include improving the effectiveness of public expenditure, enhancing competition, and promoting greater efficiency in public procurement processes.This project will also focus on strengthening the institutional framework for Public-Private Partnerships (PPPs) and reforming State-Owned Enterprises (SOEs), which are key drivers for private sector development in the country. With a total allocation of USD 1 million, the project will span over a period of three years (20242027), providing technical support and expertise to advance PFM reforms.Key activities under the project will include an IT Infrastructure Assessment, Data Center Feasibility Study, Enterprise Architecture Planning (EAP), and Integrated Financial Management and Information System (IFMIS) Readiness Assessment. These activities are essential to the modernization of Libyas financial systems, ensuring greater efficiency, transparency, and improved public service delivery.The signing ceremony was attended by Dr Khalild Al-Mabrouk, Minister of Finance of Libya, who confirmed that the reform of Public Financial Management is a key priority for the Government and Mr Masaki Amadera, Deputy Head of Mission/Special Coordinator for Libya, Embassy of Japan in Libya, who highlighted Japan's role, stating: Japan is committed to cooperate and collaborate further with the Libyan Government and its people to strengthen its nation as well as institutions. This would lead to further stability and prosperity in Libya.Through this project, the African Development Bank and the Government of Japan are reaffirming their shared vision of fostering economic growth, improving governance, and supporting the private sector across Africa. In Libya, the digitization of public finance is critical for unlocking new opportunities for development, paving the way for greater stability and prosperity.Distributed by APO Group on behalf of African Development Bank Group (AfDB).Media contact:Communication and External Relations Departmentmedia@afdb.orgAbout the African Development Bank Group:The African Development Bank Group (AfDB) is the premier multilateral financing institution dedicated to Africa's development. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NSF). The AfDB has a field presence in 41 African countries, with an external office in Japan, and contributes to the economic development and social progress of its 54 regional member states. For more information: www.AfDB.orgMedia filesDownload logo
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